Question
Fun Games sells games. Its sales and variable costs are $2,250,000 and $1,400,000 respectively. Its fixed costs are $540,930. For the sales mix, 30% of
Fun Games sells games. Its sales and variable costs are $2,250,000 and $1,400,000 respectively. Its fixed costs are $540,930. For the sales mix, 30% of its sales is the Arkham Game, 25% is from Coup, 20% is from Settlers of Catan, and 15% is Ticket to ride. (12 points) Products Unit Selling Price Unit Variable Cost Ticket to Ride $80 $65 Dixit Complete Set $120 $90 Settlers of Catan $30 $25 Arkham Game $45 $35 Coup $15 $13 Compute the break-even sales (units) for the overall product, E. (2 points) How many units of each game would be sold at the break-even point? (2 points) Compute the operating leverage for Fun Games. (2 points) How much would operating income increase if sales increased by 25%? (2 points) Compute the sales (units) of each game to realize operating income of $336,570. Assume sales mix and fixed costs remains the same.
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